Monday, September 15, 2008

10:01 a.m. EDT: What to Look for As the Day Wears On

From MarketBeat:

All of the components of the Dow Jones Industrial Average opened the day in the red, sending the Dow to a 280-point loss in the early going. Since, two components poked briefly into positive territory — Dupont and J.P. Morgan Chase. That’s been it, though, as investors react to the Lehman Brothers bankruptcy and Merrill Lynch’s shotgun marriage to Bank of America.

The major averages have attempted mild rallies so far, but the Dow is weakening again, off by more than 330 points, while investors are looking at the Standard & Poor’s 500-stock index to hold at about 1200, a level considered supportive for equities. That index is at 1216.49, having hit a low of 1212.70 earlier in the session.

“Consolidation is the final act in these kinds of Greek tragedies,” writes Charles Payne, president of Wall Street Strategies, in morning commentary. “The good news, if Bank of America is successful and acquires Merrill for $29.00 a share then we are a giant step toward the beginning, not the end....MORE

From Deal Journal (they list six winners and three losers, here's an example):

Dick Fuld and Lehman employees: It is hard to wrap one’s mind around the fact that a securities firm that was widely believed to be adequately capitalized five days ago would over the weekend be sent to the brink of a bankruptcy filing. Besides the massacre of net worth and the loss of jobs, it is a striking blow for a 158-year-old firm that was known for its tight-knit culture and the fierce loyalty of its employees. One woman who had worked there for 20 years said she hadn’t sold a single share of stock in all that time. Many employees are furious with Fuld.